ABSTRACT:This paper examines the marketing challenges and opportunities during recession. In this research work, the authors have examined in detail the current economic scenarios both with in the country and outside the country to trace out the various factors which have overtly and covertly contributed towards these recessionary trends.
In light of piquant reality, the focus of the study is to underline the various pulls and pushes through which the market is undergoing and also to provide suitable courses through which the business organization should reorient their marketing operations in particular and business operations in general.
A recession is a cyclical phase when the nation’s economy is slowing or it is the reduction of the Gross Domestic Product (GDP) for at least six months. The producers and consumers are the two basic people upon whom the whole economy revolves. The value of goods and services is determined by supply and demand. In case the price is too high there will be less demand and the producer reduces the price to increase supply.
Increasing demand leads to an increase in the production thereby increased supply which in turn results in increased labor, materials and overall increase in price. Now the general feeling is good. You want to make investments and consequently the stock markets go up.
Consequently this leads to overproduction and the supply exceeds consumption. Now the attitude of the people changes to saving mentality and this can lead to a contracting economy. People spotting a negative trend on one area fear the same to happen in other areas and suddenly recession is on.
At a glance, in a market economy the market is determined by demand and competition putting it beyond any control. A government has the fiscal and monetary policies in controlling the recession. While the former is on collecting and spending money and latter on manipulating the available money. Both can either improve the situation or worsen it.